Understanding market conditions

The real estate market is always changing, and it helps to understand how market conditions can affect your position as a buyer. Your agent can provide you with info on current conditions and explain their impact on you. There are three different types market on different time and area.

Buyers’ market

The supply of homes on the market exceeds demand.

Characteristics

High inventory of homes

Few buyers compared to availability

Homes usually stay on the market longer

Prices tend to drop

Implications

Buyers spend more time looking for a home buyer usually have more leverage

Sellers’ market

The number of buyers wanting homes exceeds the supply of homes on the market.

Characteristics

smaller inventory of homes with many buyers.

Homes sell quickly

Prices usually increase

Implications

Prices may be higher or perhaps climbing Must make decisions quickly Conditional offers may be rejected